SINGAPORE (Feb 23): Hanwell Holdings reported FY17 earnings increased by 7.8% to $11.1 million compared to $10.3 million in FY16.
Revenue for the full year ended Dec 2017 was 16% higher at $464.0 million, compared to $400.0 million in the previous year, mainly attributed to stronger demand in the group’s packaging business segment from 63.9%-owned Tat Seng Packaging but was partially offset by closure of all franchise outlets from its consumer business segment in Singapore.
See: Tat Seng Packaging posts 40.2% increase in FY17 earnings to $20.3 mil
Similarly, cost of sales increased 17.9% y-o-y to $359.2 million, bringing gross profit to $104.8 million, 10.0% higher than $95.3 million a year ago.
Gross profit margin decreased by 1.24% to 22.58% of total revenue mainly attributed to reduced margin from packaging business and Malaysia Consumer business.
Other income dropped 14.0% to $1.52 million from $1.77 million last year, mainly due to the absence of the one-off income from liquidation of an associate in FY16. This was partially offset by income recognised from franchise outlets closure and gain of fixed asset in FY17.
Other expenses jumped 90.3% to $4.66 million compared to $2.45 million in the previous year, mainly due to exchange loss incurred, but was partially offset by a lower write off of Property, Plant and Equipment due to the demolishment of an existing warehouse and manufacturing plant.
The group has declared a final cash dividend of 0.25 cents per share.
On the outlook, the group expects the trading environment for the fast-moving consumer goods (FMCG) industry to be competitive and soft for the year.
Moving into FY18, the group foresee margins may be impacted as taking price increase is lagging behind increase in cost of these commodities.
Shares in Hanwell closed at 30 cents on Friday.
